Much of this increase in spending is unnecessary and there are ways to pay for the spending without new taxes. For example, Delaware could save $90 million a year in the infrastructure category if they simply change their prevailing wage methodology from the state’s prevailing wage survey to the US Bureau of Labor & Statistics (BLS) survey. This is because Delaware’s survey is much more union-friendly and has caused public works projects to see an explosion in spending. The BLS survey includes more businesses and while still union-friendly is much less so than the state’s.

Delaware has $29 million sitting in bank accounts, unspent money collected from the Regional Greenhouse Gas Initiative. This is money polluting businesses pay to the state in order to “offset” their emission of CO2. The idea was that money would be spent on low-income weatherization projects (like installing energy-efficient windows or dishwashers in homes), but in reality most of the money spent was on administrative costs, with very little going to these projects (which had their own problems).

Delaware also makes the cost of business difficult, with electric prices 25% higher than the national average, the state with the worst gross receipts and corporate income tax rate together, and a personal income tax rate which make Delaware uncompetitive with Florida or Texas for jobs; in place the state has to essentially pay companies like ILC and Kraft Foods to keep jobs here. What we need is a natural gas pipeline to lower energy costs, a repeal or at least reduction in the tax rates mentioned above, and more support for existing firms. Delaware was last in the nation in terms of job expansion by existing in-state firms.

Let us hope that the General Assembly decides to move Delaware in a pro job-growth direction and away from punishing the middle class and small businesses of Delaware with onerous taxes and fees which are only encouraging the state to spend more.

*Note:This article will be updated when further details about the FY2015 budget are revealed.

Governor Jack Markell delivered his State of the State (SOTS) address yesterday in Legislative Hall. His 42 minute speech focused on a diverse set of topics: education, mental health/substance abuse, reducing pollution in the state’s waterways, spending more money on infrastructure (roads, bridges, etc) revitalizing downtowns like Wilmington, dealing with “gun violence” and new government programs to help students become work-ready and to help the unemployed find work. (read a recap here)

Noticeably absent? Any serious discussion of the economic record of Delaware, energy prices which are 25% higher than the national average, how the state was making expanding business possible (Delaware ranks last in existing firms expanding), what the state is doing with Sea Level Rise legislation, you get the picture. As was expected, the speech was more of a list of what Delaware is going to spend on this year, rather than a list of ideas which will not require extra spending.

Not all was bad in the speech: certainly offering students a chance to explore different fields of study is a good thing, and there is nothing inherently wrong with wanting to see the downtown areas revitalized. However, the Governor would not say how he intends to pay for $500 million in new spending-but we can figure it out: more taxes and fee increases, plus some borrowing and bond selling.

Dover- The Caesar Rodney Institute (CRI) announced today that David Stevenson, Director of the Center for Energy Competitiveness at CRI, is among four plaintiffs who filed a lawsuit this week against DNREC and DNREC Secretary Colin O’Mara.

The complaint asserts Secretary O’Mara has not been delegated the power to reduce the agency’s new carbon emissions goals, which is the basis for raising the carbon dioxide permit fees. The plaintiffs also believe DNREC is violating the Delaware Constitution by issuing a regulation on carbon dioxide emission permit fees without the state legislature, as required in the state constitution. This new regulatory ruling will cost Delaware families and businesses over $50 million a year in fees collected through consumers’ electric bills.

“Multiple parties warned DNREC this decision was a potential violation of the Delaware Constitution in public comment sessions but the comments were ignored,” Stevenson explained. ” The state constitution specifically requires that all taxes and fees must be approved by a 3/5 majority in each legislative chamber.”

“One of the biggest debates in the legislature this year was over a tax increase,” Plaintiff and State Representative Harold “Jack” Peterman said. “Twenty-two legislators opposed an attempt by Delmarva Power to raise electric rates, and both issues involved less money than this. Twenty-five percent of the money collected must be spent on energy efficiency projects and on helping people pay their electric bills, according to a multi-state Memorandum of Understanding. Unlike most state spending, the legislature has no say in how the money raised from this fee increase will be spent.”

The other plaintiffs are: Christian Hudson, of Hudson Management and Sam Yoder & Sons in Greenwood; and John Moore, CEO of Acorn Energy in Wilmington and a CRI board member.

“Businesses are already struggling with high electric bills; we don’t need to add to the problem and make Delaware less competitive”, Hudson said.

“The regulatory change DNREC is proposing doesn’t appear to be about the environment but rather about raising more state revenue”, Moore said.

The case will be heard by Judge Richard F. Stokes, Superior Court judge, in Georgetown.